1. Japan’s Nikkei 225 hits fresh high as Asia markets track Wall Street gains on Fed rate-cut hopes
Asia-Pacific markets mostly closed higher, tracking gains on Wall Street after the latest U.S. inflation data raised expectations that the Federal Reserve could cut interest rates next month. Japan’s benchmark Nikkei 225 added 1.3% to close at a record high of 43,274.67, while the Topix added 0.83% to end the trading day at 3,091.91. South Korea’s Kospi added 1.08% to 3,224.37, and the small-cap Kosdaq advanced 0.86% to 814.1. Mainland China’s CSI 300 ended 0.79% higher at 4,176.58. Australia’s S&P/ASX 200 closed 0.6% lower at 8,827.1.
2.Dow rallies 400 points for a second day, S&P 500 closes at another record high
Stocks rose Wednesday, adding to their recent momentum as expectations for lower U.S. Federal Reserve rates continue driving the major indexes to all-time highs. The Dow Jones Industrial Average gained 463.66 points, or 1.04%, at 44,922.27. The S&P 500 added 0.32% to finish at 6,466.58, while the Nasdaq Composite settled up 0.14% at 21,713.14. Both indexes closed at record highs for the second straight day. Those moves followed a record-setting session Tuesday sparked by a tamer-than-expected inflation report that gave investors hope of a Fed rate cut in September. Traders are pricing in a near 100% chance of a rate cut at the Fed’s September meeting, per trading data from the CME’s FedWatch Tool.
3. Gold gains on weak dollar, investors ramp up Fed rate cut bets
Gold rose on Wednesday, lifted by a weaker dollar and falling Treasury yields, as mild U.S. inflation data cemented expectations for a Federal Reserve rate cut in September and nudged up bets on additional easing later this year. Spot gold gained 0.4% to $3,357.59 per ounce. U.S. gold futures for December delivery rose 0.3% to $3,408.50. The dollar index hit a more than two-week low, making bullion cheaper for overseas buyers, while the yield on the benchmark 10-year Treasury notes edged lower. Investors now await further U.S. indicators this week, including the producer price index, weekly jobless claims, and retail sales. On the geopolitical front, European and Ukrainian leaders were set to speak with Trump ahead of his meeting with Russian President Vladimir Putin, while Washington and Beijing extended their tariff truce by 90 days.
4. Oil prices fall after US crude build and ahead of Trump-Putin talks
Oil prices fell on Wednesday after a U.S. crude supply unexpectedly rose, but losses were limited after the U.S. Treasury Secretary said President Donald Trump could leverage sanctions at a meeting with Russian President Vladimir Putin. Brent crude futures dropped 49 cents, or 0.74%, to close at $65.63 a barrel, while U.S. West Texas Intermediate crude futures fell 52 cents, or 0.82%, to settle at $62.65 a barrel. U.S. crude stocks rose by 3 million barrels to 426.7 million barrels, the Energy Information Administration said on Wednesday. Analysts had expected a 275,000-barrel draw. Net U.S. crude imports rose last week by 699,000 barrels per day, EIA said. The International Energy Agency on Wednesday raised its forecast for oil supply growth this year but lowered its demand forecast.
5. Dollar extends weakness as anticipation mounts of Fed interest rate cut
The dollar fell for a second straight session on Wednesday, a day after a U.S. inflation reading increased expectations of a Federal Reserve rate cut next month, and renewed pressure from President Donald Trump for lower rates added to the sell-off. The dollar index, measuring the currency against a basket of peers, fell 0.2% to 97.81, its lowest since July 28, extending its 0.5% drop on Tuesday. U.S. consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump’s sweeping tariffs to goods prices has so far been limited. Investors priced in a 98% chance the central bank would ease rates next month, according to LSEG data. On Wednesday, Treasury Secretary Scott Bessent called for a “series of rate cuts,” and said the Fed could kick off the policy rate easing with a 50-basis point cut.
6. European powers threaten ‘snapback sanctions’ if Iran doesn’t return to nuclear talks
France, the U.K. and Germany have told the United Nations they support reinstating snapback sanctions on Iran, if it doesn’t re-enter dialogue with the West over its nuclear program, according to reports. The reportedletter was delivered to the U.N. Security Council and U.N. Secretary-General António Guterres two months after Israel and the U.S. bombed Iran’s nuclear facilities over the course of a 12-day conflict that set regional tensions and energy prices soaring. The EU said in mid-July that it would start the process of reinstating UN sanctions on Tehran from Aug. 29 if it does not make sufficient progress on limiting its nuclear program. Those sanctions are set to expire on October 18 unless one of the remaining parties of the deal — Russia, China, or a member of the E3 — triggers the snapback option.
7. Scott Bessent floats rolling out export tax to more industries
US Treasury secretary Scott Bessent has raised the prospect of the White House rolling out the unprecedented revenue-sharing agreement it struck with chipmakers Nvidia and AMD to other industries. President Donald Trump upended corporate norms this week after Nvidia and AMD agreed to give the US government 15 per cent of their Chinese chip sales in exchange for being awarded export licences. “I think we could see it in other industries over time,” Bessent told reporters on Wednesday. “I think right now this is unique, but now that we have the model and the beta test why not expand it?”
8. The world is not going to trust our data’: Donald Trump’s BLS pick sparks alarm
Donald Trump’s sacking of the Bureau of Labor Statistics’ boss after grim jobs report this month sparked investor fears that he was politicising the world’s most closely watched economic data. Trump’s pick to lead the BLS, EJ Antoni, a fierce loyalist and cheerleader for the president’s tariffs and economic strategy, has only deepened the anxiety. Taylor Rogers, a spokesperson for the White House, said Trump had picked Antoni for his “education and vast experience as an economist”, noting that he had “frequently testified before Congress on economic issues and his research has been featured by many think-tanks and advocacy groups”. Some economists are sanguine about Antoni’s nomination, saying it would be difficult for any BLS chief on their own to compromise the data.
9. Deutsche Bank upgrades Palo Alto on growth, CyberArk deal potential
Deutsche Bank upgraded Palo Alto Networks to Buy from Hold and raised its price target to $220, saying investor concerns over its planned CyberArk acquisition are overstated and that the cybersecurity firm is set for solid quarterly results. “With the stock underperforming broader cyber since credible speculation of the acquisition, we think investor concerns are overblown,” analysts said. The brokerage said Palo Alto shares have lagged the broader sector this year, falling 15% relative to peers and 11% since reports of the CyberArk deal, despite the company’s faster organic growth compared to rival Fortinet. Deutsche Bank pointed to its survey of cybersecurity partners, which suggested stronger fiscal fourth-quarter demand, helped by broad product momentum and gains for Prisma Cloud and XSIAM from competitive disruption at Splunk and Wiz. It also expects another robust performance from software firewalls, potentially lifting product revenue above Wall Street forecasts.
10. Google to spend $9 billion in Oklahoma to expand AI, cloud infrastructure
Alphabet’s Google said on Wednesday it will spend an additional $9 billion in Oklahoma over the next two years to expand cloud and artificial intelligence infrastructure. The company will build a new data center campus in Stillwater and expand its Pryor facility to bolster U.S. AI and cloud capacity, alongside education and workforce programs. The plan underscores growing competition among Big Tech companies to secure sites and talent amid intensifying demand for AI services and cloud computing. As part of a broader $1 billion commitment to American education and competitiveness, the University of Oklahoma and Oklahoma State University have been included in the first cohort of the Google AI for Education Accelerator, which launched last week. This program provides students at both universities with free access to Google Career Certificates and AI training courses.
11. Oracle cuts jobs in cloud unit amid AI infrastructure spending
Oracle Corp. is reducing its workforce in its cloud division as the company works to manage costs while investing heavily in artificial intelligence infrastructure. Employees affected by the job cuts were informed this week that their positions had been eliminated, according to Bloomberg, citing people with knowledge of the situation. Some of the layoffs were performance-related, and the cloud unit is still actively recruiting new talent, according to two sources familiar with the matter. Oracle has not responded to multiple requests for comment about the workforce reductions. The total number of positions being eliminated remains unclear. The job cuts were initially reported by industry publication Datacentre Dynamics.
12. Tencent reports 15% revenue growth in Q2, gaming leads performance
Tencent posted a 15% increase in second-quarter revenue on Wednesday, with strong gaming performance and AI-powered business initiatives driving growth. The Chinese technology company reported revenue of 184.5 billion yuan for the three months ended June, exceeding analyst expectations of 178.5 billion yuan according to LSEG data. Domestic gaming revenue rose 17% to 40.4 billion yuan, while international gaming revenue showed even stronger growth, climbing 35% to 18.8 billion yuan. The company’s marketing services also performed well, with revenue increasing 20% year-on-year to 35.8 billion yuan. Tencent’s net profit reached 55.6 billion yuan for the quarter, surpassing analyst projections of 52.3 billion yuan.
